Australian financial giant posts hundreds of millions in losses

One of the heavyweights in the Australian financial industry, AMP has reported a full year 344 million (Australian dollar) net loss on Thursday, with an underlying profit of 486 million (Australian dollars).

The financial giants losses were centered around poor performance in their Wealth Protection division, which operated at a 415 million (Australian dollar) loss, blamed on negative claims experience and capitalized loss.

The company still managed to report a robust cash on hand balance, with a surplus of 2.3 billion (Australian dollars), however the return on equity was struggled, down to 5.6 percent, after last year's result of 13.2 percent.

AMP chief executive Craig Meller says the although the wealth protection market "deteriorated" during the course of last year, he is optimistic they have managed to right the ship, with more global expansion on the cards, next year.

"International expansion is gaining momentum, particularly in China, as well as in Europe and North America, where we are exporting our home-grown investment and pension expertise," Meller said.

"AMP's partnerships with China Life- China's largest listed insurance group, institutional investor and corporate pension manager - are stronger than ever."

AMP will engage in an on-market share buy back of up to 500 million (Australian dollars), and will pay a final dividend of 14 Australian cents per share to investors. Endit